Enerplus Corporation (ERF) Dividends

ERF Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. Regarding ENERPLUS Corp, the DDM model, as implemented by StockNews, implies a negative return of 79.08% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for ENERPLUS Corp are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Energy sector, the expected return of -79.08%, based on the stock's current share price and target price based on a dividend discount model, is greater than 6.67% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, ENERPLUS Corp bears a discount rate, according to our calculations, lower than 6.67% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, ENERPLUS Corp has been increasing its dividends at a faster rate than 6.85% of US-listed dividend-issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Energy sector, ERF's equity discount rate is less than 6.67% of those stocks.

ERF Dividends vs. Peers